A subgame-perfect equilibrium is a Nash equilibrium that
a. cannot persist through several periods.
b. involves only credible threats.
c. consists only of dominant strategies.
d. is unique.
b
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Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widgets consumed domestically?
What will be an ideal response?
Total reserves are the sum of ________ and ________
A) excess reserves; borrowed reserves B) required reserves; currency in circulation C) vault cash; excess reserves D) excess reserves; required reserves
If the central bank is facing the zero bound constraint and announces a higher inflation target,
A) the real interest rate will increase, which will decrease aggregate expenditure. B) the real interest rate will decrease, which will increase aggregate expenditure. C) the nominal interest rate will increase, which will decrease aggregate expenditure. D) the nominal interest rate will decrease, which will increase aggregate expenditure.
As the interest rate decreases, the quantity of money people will hold:
a. decreases. b. increases. c. stays the same. d. rises and then falls. e. falls and then rises.